Profitability of buying property in Spain to rent out falls to 7.2% in second quarter, compared to 7.5% in same period 2024

vivienda españa

CdM | The gross return on buying a property to put on the rental market fell to 7.2% in the second quarter, compared to 7.5% in the same period in 2024, according to a study by Idealista.

Offices remain the most profitable real estate investment. They offer a gross return of 11.5%, down from 12.8% twelve months ago. Commercial premises offer a return of 10.1% (9.7% a year ago) and garages stand at 6.7%, up from 6.2% in June 2024.

In terms of residential property returns, Murcia is the most profitable Spanish city, reaching 8%, followed by Jaén, Segovia, Zamora and Huelva, which all share 7.6%. Above 7% are the cities of Lleida (7.5%) and Castellón de la Plana (7.3%). Next is Almería (6.9%), Las Palmas de Gran Canaria, Lugo and Ávila (6.8% in all three cases).

In contrast, San Sebastián is the city with the lowest profitability (3.7%), followed by Palma (4.5%), Cádiz, Madrid, A Coruña and Pamplona (4.7% in all four capitals). In Barcelona, it stands at 5.8%.

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The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.